The short-run aggregate supply curve shows how ________ cause output to rise.
A)increases in inflation
B)decreases in unemployment
C)decreases in nominal interest rates
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The short-run aggregate supply curve shows how the total production of goods and services in an economy changes in response to changes in the price level, not directly due to increases in inflation, decreases in unemployment, or decreases in nominal interest rates. These factors can indirectly affect the aggregate supply but are not the direct cause of shifts in the short-run aggregate supply curve.

The Short-Run Aggregate Supply Curve Shows How ________ Cause Output